Donald Trump, as promised in his election manifesto has announced the new Tax Plans for 2017 for USA. Some of the highlights are given below:
- Reducing the existing tax brackets of 7 to 3 which will have 15%, 25% and 35% for the individuals.
- Doubling the standard deduction.
- Provide tax relief to American families – particularly middle-income families.
- Protecting the home ownership and charitable gift tax deductions.
- Repeal the Death Tax and Alternative minimum tax.
- For the benefit of wealthy tax payers – eliminate targeted tax breaks.
- Repeal 3.8% Obamacare tax for the benefit of small businesses and investment income – this was a much expected move from the Trump Government.
For business, the announcement includes:
- 15% business tax rate
- Eliminate tax rates for special interest.
- One time tax on trillions of dollars held overseas which is otherwise known as expatriate income and the proposed tax rate is 10%
- Territorial tax system to level the playing filed for American companies.
The announcements are expected to bring cheers in the face of Americans which is reeling under unemployment and slower economic growth.